Signing of Investment MOU
Creation of 100 New Jobs
Global automotive parts specialist Capec Valeo Co., Ltd. is making a large-scale investment in the Yeongcheon High-Tech Park District.
On July 7, Gyeongsangbuk-do Province signed a memorandum of understanding (MOU) at Yeongcheon City Hall with Capec Valeo Co., Ltd., Yeongcheon City, the Daegu-Gyeongbuk Free Economic Zone Authority (DGFEZ), and Korea Land and Housing Corporation (LH). The agreement includes an investment of 160 billion KRW and the creation of 100 new jobs.
The event was attended by Lee Nameok, Head of the Airport Investment Headquarters of Gyeongsangbuk-do Province, Choi Kimoon, Mayor of Yeongcheon, Kim Byungsam, Commissioner of the Daegu-Gyeongbuk Free Economic Zone Authority, Shin Sooncheol, CEO of Capec Valeo Co., Ltd., and a total of 10 participants.
Capec Valeo Co., Ltd. is pursuing a domestic reshoring initiative, and with this investment, the company plans to establish an electric vehicle battery system (BSA) production line on a 36,363-square-meter site within the Yeongcheon High-Tech Park District from 2025 to 2030.
The electric vehicle battery system (BSA) refers to a finished product that combines electronic components and a battery management system (BMS) with the battery pack, enabling the battery to operate safely and efficiently in electric vehicles. High-capacity, high-efficiency battery systems are key components that determine the quality and performance of electric vehicles.
Capec Valeo Co., Ltd. is an affiliate of the PHC Group. It was established in 2017 as a joint venture (JV) between Korea Powertrain (founded in 1993) and France’s Valeo Group. The company is a global automotive parts manufacturer with its headquarters in Daegu, Korea, plants in Waegwan and Seongju, Gyeongbuk, and local subsidiaries in Mexico, China, Japan, and the United States.
Its main products include torque converters, gear actuators, and engine pulleys. Among these, torque converters are supplied to both domestic and international automobile brands, securing a unique market position.
Meanwhile, Gyeongsangbuk-do Province was selected in 2024 by the Ministry of Trade, Industry and Energy as an outstanding local government for attracting reshoring companies, and received a Prime Minister’s Commendation. As a result, when applying for domestic reshoring investment subsidies in 2025, the province will receive an additional 5% of national funding compared to other local governments, reducing the burden on local finances.
Additionally, Gyeongsangbuk-do Province has been actively promoting investment incentives to company representatives by holding ‘Reshoring Company Roundtables’ in August and November of last year, and hosting a briefing session on attracting reshoring and regional expansion companies on June 25.
Shin Sooncheol, CEO of Capec Valeo Co., Ltd., stated, "This investment marks an important milestone for Capec Valeo to re-emerge as a global leader in the era of electrification, not only as the world’s No.1 automatic transmission torque converter company, but also through electric vehicle battery systems (BSA) and energy storage systems (ESS). Going forward, we will continue to pursue sustainable development and fulfill our corporate social responsibility based on ESG management, together with Gyeongsangbuk-do Province."
Lee Nameok, Head of the Airport Investment Headquarters of Gyeongsangbuk-do Province, said, "This MOU is the result of Gyeongsangbuk-do’s proactive efforts to attract companies, and it is expected to have a significant ripple effect in attracting related companies and revitalizing the regional economy. Gyeongsangbuk-do Province will guarantee a stable investment environment for Capec Valeo Co., Ltd. through active administrative and financial support."
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